Stifel's tab for settlements and arbitration awards tied to a now-barred broker is pushing $200 million and — with more than 20 pending complaints — is likely to keep growing.
Stifel agreed last month to a $1.175 million settlement with investors over allegations of negligence, fraud and breach of fiduciary duty related to investment recommendations made by its former broker Chuck A. Roberts. That brought the total to just over $199.5 million in payments for complaints clients have brought against Roberts since late 2022.
Roberts, who ran a Stifel-affiliated practice called CR Wealth Management Group in Miami and New York, has a BrokerCheck page showing 43 customer disputes logged against him since October 2022, including two that were opened in March of this year. Of the total, 16 have resulted in settlements or arbitration awards, three were denied by Stifel, one was withdrawn by the complainants and the remaining 23 are pending.
The biggest retail arbitration award ever
Roberts resigned from Stifel last June and was barred from the industry the following month by the Financial Industry Regulatory Authority, the self-regulator for broker-dealers. His recommendations of structured notes — a complicated type of debt liability — were the cause of the largest award to ever be handed down by FINRA arbitrators in a case brought by retail investors.
Other arbitration penalties stemming from Roberts' advice
